Meeting script:

Introductions (5 minutes)

• Team leaders should introduce themselves first, and then they should call on others. Introductions should include your name, title, credit union, field of membership, and Project Zip Code numbers.
• After the round of introductions, team leaders should hand over the folder to the legislative member or staff aide.

Health and Strength of Credit Union Industry (3 – 5 minutes)

• As the financial services sector has remained front and center over the past few months, we wanted to take this opportunity to remind you how credit unions are different and share some details about the strength of the credit union industry.
• A quick “101” on credit unions: Credit unions are not-for-profit, member-owned financial cooperatives. Credit unions exist to serve our members, not make a profit. Credit unions don’t issue stock or bonds. Instead, earnings are returned to our members in the form of lower loan rates, higher interest on deposits, and lower fees. This membership model means credit unions are democratically run by our member-owners, not by shareholders. Thus, the institution acts in the best interest of its membership and is generally risk averse.
• The risk-averse nature of credit unions means we prioritize safety and soundness, especially during times of economic uncertainty. Currently, credit unions in California have a net-worth-to-assets ratio of 10.5 percent, which is well above the 7 percent “well capitalized” federal regulatory threshold.
• More than 90 percent of member deposits in California credit unions is insured, which is the highest in the financial services industry.
• In short, credit unions have always been operated by our members and for our members. The security of our members’ deposits and the safety and soundness of our industry is a chief concern for credit unions. Your deposits are safe with credit unions.

Elder Financial Abuse Liability – Senate Bill 278 (Senator Bill Dodd) (5 minutes)

• The next issue we would like to discuss with you is our opposition to a well-intended bill that will have a severe negative impact on credit unions and the population that they are trying to help — Senate Bill 278. The bill would have held a credit union liable if it knowingly or unknowingly “assisted” in any case of elder financial abuse.
• The bill was amended late into the night of Sunday, April 9. The California Credit Union League is still reviewing amendments.
• In light of these amendments, we wanted to share with you the impact of elder financial abuse.
• Credit unions take elder financial abuse very seriously, as employees are trained to identify elder abuse and try to stop it from happening. In addition to the training on how to identify and stop these transactions, credit union employees are mandated reporters, meaning the employees of our credit union must report any instances of elder financial abuse to the authorities.
• These cases of financial abuse are very difficult for all parties involved. Many times, the senior member does not want to listen to what the employee of the credit union is telling them — and despite pleading with the senior, this member still wants to move forward with the transaction. In these cases, there is little a credit union can do since the money belongs to the senior.
• Under SB 278 as it was drafted, even if a credit union complied with all of its policies and procedures and reported the event of elder financial abuse to the authorities, the credit union could still be held liable for the transaction.
• We recognize that not all institutions and individuals take elder financial abuse seriously. As credit unions, we appreciate the goal of protecting seniors.
• Amendments that went into print last night (evening of April 10) are still being reviewed, but they would add “knowingly aiding or abetting” into the definition of elder financial abuse and would define “assist” for the purpose of elder financial abuse.
• League staff will follow up with updates regarding our position.

Our “Ask”: Please consider the amount of work credit unions are doing to prevent elder financial abuse. We look forward to continuing to work with the author and his office on SB 278.

Financial Literacy (5 minutes)

• The next topic we would like to discuss is financial literacy.
• Credit unions have proudly supported legislation over the years to improve the financial literacy of Californians.
• Currently, there are 7 financial literacy bills in the Legislature. We support all 7 of the listed financial literacy bills as outlined in our letter/materials.
• For this meeting, we want to focus on one financial literacy bill in particular — Assembly Bill 984.

Assembly Bill 984 (Assemblymember Kevin McCarty)

• Location: Assembly Education Committee.
• Coauthors: None.
• AB 984 would require high school students to complete at least one semester of a personal finance course as part of the graduation requirements by the 2028-29 school year.
• This bill would allow local educational agencies and charter schools to require a full-year course (instead of just one semester) in personal finance at their discretion.
• AB 984 would also require local educational agencies and charter schools to begin offering a course in personal finance by the 2025-26 school year.
• As of this year, there are 17 states in the United States requiring high school students to complete a personal finance course, but unfortunately California is not one of them.
• We strongly believe that students who receive financial education early on will be provided with the framework for a successful adulthood.
• By including a personal finance course as part of the high school graduation requirements, California students will be equipped with the necessary tools and resources to navigate future financial decisions — such as paying for college, applying for credit cards, purchasing their first car, renting or owning a home, and many more decisions.

Credit Union Financial Literacy Programs

• In addition to supporting financial literacy legislation, we would also like to take a moment to share a little bit about how credit unions provide financial education to our communities. Please share financial literacy examples specific to your credit union, or you can use the following example…
• With the assistance of the Richard Myles Johnson (RMJ) Foundation, the state foundation for credit unions in California and Nevada, credit unions host “Bite of Reality” events across the state.
• This program presents students with a variety of financial situations and decisions, walking them through the everyday challenges they will one day face in managing their finances. From purchasing transportation and housing to having children and handling credit card debt, students must budget properly or risk financial failure.
• Since the program launched in 2012, California credit unions have reached 128,000 students.
• If there is any interest in hosting a financial literacy event in the district, we would be happy to partner with your team to provide this financial education to the community.

If the legislative staff and/or member are interested in hosting a financial literacy event, please make a note and get the best point of contact before leaving the meeting.

Our “Ask”: Please support AB 984, as well as the other financial literacy bills listed in our letter, to encourage state efforts to provide all California students with quality and accessible financial education.

Conclusion (1 minute)

• Thank you very much for listening to the issues impacting credit unions and credit union members across the state. We have compiled a leave-behind document with some general information and figures on credit unions in California.
• If you have any questions regarding credit unions in the state or the California Credit Union League’s bill positions, please contact Robert Wilson at 916-325-1366 or Robertw@ccul.org.